Milk Value Chain Analysis in North Mecha Woreda of Amhara Region, Ethiopia

Ethiopia is the country that has benefited less compared with its potential for dairy production. Thus, milk value chain analysis is crucial and a prior process for value chain development in the dairy sector. This study was conducted in Mecha woreda with the general objective of analyzing cow milk value chain. Rapid market appraisal (RMA), key informant interviews, focus group discussions (FGD), and a survey were employed to collect both quantitative and qualitative data. The data were collected from primary data sources (200 milk producers, 35 traders, five supermarkets, ten hotels and ten cafes and restaurants, three dairy cooperatives, two milk processors, and 60 consumers). Milk producers were selected using systematic random sampling techniques. Traders, supermarkets, hotels and cafes, restaurants, and consumers were sampled using snowball sampling method, while all dairy cooperatives and milk processors were included for interview. Descriptive analysis and value chain analysis were used to analyze data. Milk producers, dairy cooperatives, milk processors, supermarkets and hotels, butter traders, cafes and restaurants, and consumers are key value chain actors. Raw milk market access may suppress the traditional milk process and products.  Milk producers had the highest share (65.07%) while cafes and restaurants had the least share (0.82%) of consumer price. The higher percentage of value addition was recorded by milk producers and processors. The type of value chain governance was predominantly captive type. Semi-process and product upgrading were the main upgrading types. Improved forage delivery, and strengthening improved breed program services, strengthening and forming of dairy cooperatives, upgrading milk and traditional milk products, transforming captive governance to market governance, offering improved processing technology, and further research on value addition techniques and traditional milk products need to be considered to improve the milk value chain development.